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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year. Granite.

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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year. Granite. Lime Nina Total Sales $506,000 $271,500 $229,000 $1,006,500 Variable Costs: 177,000 124,200 100,300 401,500 Contribution Margin Profit Margin 329,000 147,300 128,700 605,000 Fixed Costs (allocated) 259,000 154,250 120,750 534,000 $ 70,000 $ (6,950) $ 7,950 71,000 a. What would Rock's profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped?

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